Ins and outs of boat insurance

As I mentioned last week, I had surgery on my leg and was unable to enjoy any excursions on my boat over the Memorial Day holiday. However, I have learned that my injury will not stop my children from playing with my toys.

As they were about to leave, the last thing I gave them was this year's Pennsylvania boat registration. If you own a boat in Pennsylvania it should be titled and registered with the state Fish and Boat Commission. If in doubt about your boat's need for registration, visit fishandboat.com for all the facts.

Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of life at sea and sought to insure their boats against hurricanes and other unpredictable weather and waters.

Boat insurance policies can vary in what they do and do not cover, based on a number of considerations, including the type of boat, the water it will traffic, and how many months of the year the boat will be used. Still, there are a few basic kinds of coverage you can expect to receive, as well as some potential discounts for safe boaters.

Physical damage

This coverage insures your boat against damage and loss caused by common risks, such as sinking, fire, storms, theft and collision. The property covered can vary, but the policy will usually cover the hull and other permanent components, such as motors, extra fuel tanks, batteries, anchors and onboard safety equipment such as flotation devices and fire extinguishers.

A boat trailer may or may not be covered, depending on the policy. Trailers can cost thousands of dollars. Make sure your boat policy covers your trailer.

When choosing your policy, be sure to ask whether you will be insured for the boat's replacement cost or its actual cash value. A replacement cost policy will reimburse you the cost of repairing the boat to its original condition or replacing the boat with the same or similar model. A policy based on actual cash value will reimburse you for the current market value of the repair or replacement (the original price minus depreciation).

Liability coverage

This coverage applies if your boat causes injury to others or damage to other boats, docks or structures. Keep in mind that the injury or damage can be due to direct contact with your vessel or situations caused by your vessel, such as large wakes.

Good liability coverage may provide protection against lawsuits, including the payment of settlements and legal fees.

When towing your boat, liability coverage extends from the vehicle pulling the trailer. Make sure the vehicle towing you boat has good liability coverage.

Other coverages

Your insurer may offer additional kinds of coverage to go with your basic boat insurance.

Medical coverage can be provided for injuries to you, the insured, or your guest. Personal property coverage can cover things like coolers, clothing, swim toys and fishing gear.

Remember boating is seasonal. In Western Pennsylvania, we have three good boating months. A boater's greatest fear is that his or her boat is not running when they want to use it. Rental reimbursement enables you to rent another boat when yours has been damaged and cannot be used. If you fish in tournaments or commercially, you get fishing tournaments fee and incidental commercial fishing endorsements.

Discounts

The best way to lower your boat insurance premium is to become a safer boater. Many insurers offer discounts to boaters who have completed an approved boating safety course. Some states requirer these courses to operate a boat.

As always talked to your insurance agent, ask about all the coverages they offer.

Have fun on the water, but be careful and sober. Boating can be a great recreation, but safety should always be considered first.

Bob Hollick is a State Farm Insurance agent based in Washington. His column appears every other Friday in the Observer-Reporter.